All posts by Clifford E. Kirsch, Editor

Eversheds Sutherland With more than 25 years of experience, Cliff regularly counsels clients on the design and distribution of investment products including wrap-fee programs and other advisory products, mutual funds, bank collective investment funds and insurance products. He also focuses on issues related to the design and implementation of compliance programs at financial services firms.
Compliance, Enforcement, Regulatory, Standard of Care

SEC Releases 2027 Examination Priorities: Is Your Compliance Program Ready?

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The SEC’s FY 2027 examination priorities send investment advisers a clear message: compliance programs must reflect how firms actually operate. Examiners will focus on:

  • Conflicts of interest: Fees, compensation, and whether practices match disclosures.
  • Private funds: Illiquid assets, allocations, borrowing, and fee and expense practices.
  • Compliance programs: Especially at firms with recent acquisitions, growth, or new strategies.
  • AI, cybersecurity, and vendors: Technology disclosures and third-party access to client data.
  • Proxy and reporting: Proxy adviser oversight and beneficial ownership filings.

Never-examined and newly registered advisers remain a priority. CCOs should use this roadmap to find gaps before examiners do. To help you make sense of what this means for you and your clients, read the full article from our friends at SEC3 here.

Compliance, Enforcement, International, Regulatory, Standard of Care

Updates on SEC, FINRA, FCA and more from FiSolve

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AI takes center stage in this edition, as regulators on both sides of the Atlantic push firms to innovate responsibly. We also cover a Supreme Court petition challenging FINRA, a cooling job market, new cross-border cooperation, and a major crypto enforcement action:

  • The SEC’s Brian Daly urges advisers not to wait for guidance before adopting AI, and outlines a “responsible retailization” initiative
  • A broker asks the Supreme Court whether constitutional challenges to FINRA proceedings must first go through the SEC
  • Hiring slows as the labor market cools, which may ease recruiting pressure in compliance and risk roles
  • The SEC will host a November 9 roundtable on machine-understandable data and super intelligence
  • The FCA calls for responsible AI adoption as finance moves toward an “agentic” future
  • The SEC and France’s AMF sign a supervisory MOU covering cross-border investment firms
  • Ireland’s central bank fines Coinbase Ireland €3.25 million for safeguarding and outsourcing failures

Read the full update from FiSolve here.

Regulatory, Standard of Care

SEC Proposes Expanded Performance Fee Eligibility and Accredited Investor Qualifications

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On September 30, 2026, the SEC proposed amendments to Advisers Act Rule 205-3 that would broaden when advisers may charge performance-based compensation. Separately, the SEC is weighing new ways for individuals to qualify as accredited investors. Key points:

  • One eligibility standard: The “qualified client” definition would adopt the Regulation D accredited investor standard, replacing separate net worth and AUM tests. This is a notable shift for 3(c)(1) funds and separately managed accounts.
  • Registered funds and BDCs: Could pay performance fees, subject to board approval and added disclosure.
  • New accredited investor pathways: The SEC is seeking comment on qualifying CPAs, CFAs, CFPs, and certain FINRA registrants, plus a possible FINRA-administered exam.

Until any changes take effect, current requirements still apply. In the meantime, advisers should review eligibility procedures, offering documents, and fee arrangements. Comments on the performance-compensation proposal are due December 7, 2026.

To help you make sense of what this means for you and your clients, read the full article from our friends at SEC3 here.

Compliance, Enforcement, Regulatory, Standard of Care

Updates on SEC, FINRA, CFTC and more from FiSolve

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This week’s theme? Regulators are looking at the big picture. From implied investor “groups” to AML red flags that add up, firms are expected to connect the dots before regulators do. Here are five top stories to know, with more where these came from:

  • SEC warns on Section 13(d) “groups”: A Section 21(a) Report tied to the 2021 ExxonMobil proxy contest makes clear that coordinated engagement can form a group, even without a written agreement. That could put Schedule 13G eligibility at risk.
  • FINRA: patterns matter in AML: An $800,000 penalty and an independent consultant followed missed warning signs in foreign-based small-cap IPO activity.
  • SEC targets cherry-picking: A new case reinforces advisers’ duty to allocate trades fairly and document it.
  • New FINRA Rule 3290 on OBAs: Approved by the SEC on September 15, 2026, the rule replaces Rules 3270 and 3280 with a more risk-based framework.
  • CFTC moves on crypto: An Advanced Notice of Proposed Rulemaking seeks input on a national framework for retail crypto transactions and new “crypto asset markets.” Comments are due 60 days after Federal Register publication.

The bottom line: from investor coordination and AML monitoring to trade allocation, outside business activities, and crypto, regulators expect firms to spot risks early, not after the fact. And there’s more in this week’s roundup, including ESMA’s push to update MiCA, the FCA’s proposed 90-day notice for illiquid funds, new research on investor literacy, and why Zoom calls are the latest in-flight nuisance.

Read the full update from FiSolve here.

Compliance, Enforcement, International, Regulatory, Standard of Care

Updates on SEC, FCA and more from FiSolve

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Private markets and crypto took center stage this week, as regulators on both sides of the Atlantic moved to widen access while raising the bar on transparency and safeguards. Here are five highlights, and there’s plenty more in this week’s roundup:

  • SEC opens the door wider to private markets: Proposed amendments would broaden performance-fee eligibility, modernize interval funds, and permit multiple share classes for closed-end funds. The SEC is also seeking comment on expanding the accredited investor definition to include credentialed professionals.
  • A new crypto custody framework: The SEC’s proposal (Release No. IA-7023) would let advisers self-custody certain crypto assets or use qualifying state trust companies, subject to enhanced safeguards.
  • Valuation under the microscope: SEC staff warn that boilerplate won’t cut it. Private asset valuations, especially in private credit, need robust support and tailored disclosure.
  • FCA opens its crypto gateway: UK crypto firms can now apply for authorization. Applications are expected by February 28, 2027, ahead of the regime’s October 25, 2027 start date.
  • New York expands personnel file access: Starting November 8, 2026, employers must provide current and former employees with free copies of their personnel records within five business days of a written request.

That’s just a sampling. Also in this week’s roundup: an SEC case on referral conflict disclosures, the SEC’s new examination handbook, FINRA’s unified Regulatory Operations, CFTC guidance on crypto and tokenized collateral, ESMA’s 2027 priorities, and more. Read the full update from FiSolve here.